infoTECH News

[April 03, 2013]

TranSwitch Corporation Announces Closing of Common Stock and Warrant Offering and Over-Allotment Option

SHELTON, Conn. --(Business Wire)--

TranSwitch (News - Alert) Corporation (NASDAQ: TXCC) today announced the completion of
its previously announced public offering of 8,300,000 units, consisting
of one share of common stock and a warrant to purchase 0.50 of a share
of common stock, including 1,245,000 units pursuant to the exercise in
full of the over-allotment option granted to the underwriter. After the
underwriting discount and estimated offering expenses payable by the
company, the company received net proceeds of approximately $3.7
million. Maxim Group LLC acted as sole manager for the offering.

TranSwitch intends to use the net proceeds from the offering for product
development, general corporate purposes and working capital. The units
described above are being offered by TranSwitch Corporation pursuant to
a registration statement previously filed with and subsequently declared
effective by the Securities and Exchange Commission. A prospectus
supplement relating to the offering was filed with the SEC (News - Alert) on March 28,
2013 and is available on the SEC's website at http://www.sec.gov.

In addition, on March 27, 2013, the company delivered a notice to Aspire
Capital Fund, LLC ("Aspire") terminating the Common Stock Purchase
Agreement between the company and Aspire (the "Common Stock Purchase
Agreement"). During the first quarter of 2013, the company received
proceed of approximately $1 million from sales of 1,250,000 shares of
its common stock to Aspire, pursuant to the Common Stock Purchase
Agreement. Year-to-date the company has raised a total of approximately
$4.7 million through sales of its common stock.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the securities described herein,
nor shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any
such state or jurisdiction. Copies of the prospectus supplement and
accompanying base prospectus relating to the offering may be obtained
from Maxim Group LLC 405 Lexington Avenue, New York, NY 10174, (800)
724-0761.

This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995
regarding the proposed public offering and the intended use of proceeds
from the offering. The offering is subject to market and other
conditions and there can be no assurance as to whether or when the
offering may be completed or as to the actual size or terms of the
offering. These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially,
including market conditions, risks associated with the cash requirements
of our business and other risks detailed from time to time in our
filings with the Securities and Exchange Commission, and represent our
views only as of the date they are made and should not be relied upon as
representing our views as of any subsequent date. We do not assume any
obligation to update any forward-looking statements.